US SB1576

Amends Internal Revenue Code Section 162(m) to expand the $1 million deduction limit on executive compensation from "covered employees" to "covered individuals," capturing anyone who performs services for a publicly held corporation, including contractors and consultants, for taxable years beginning after December 31, 2024

Expands the definition of "publicly held corporation" to include companies required to file reports under Section 15(d) of the Securities Exchange Act at any time during the preceding 3-taxable year period

Maintains existing coverage for principal executive officers, principal financial officers, and the 3 highest compensated officers whose compensation was reported to shareholders for taxable years between December 31, 2016 and January 1, 2025

Grants the Treasury Secretary authority to prescribe regulations to prevent avoidance of deduction limits through pass-through entities or other structures

Effective date applies to taxable years beginning after December 31, 2024